The Forex Market Insight Report shows charts on different major currencies and commodities, with brief commentaries on how new data releases and news cause movements in the market.

Headline:

  • Investors take fright after European bond auctions but markets see US-led comeback
  • Aussie well supported with late move back toward resistance at 1.0400
  • Euro hit after bond auctions, trades back down to 1.2900
  • Dow regains early losses to close 21 points higher
  • Gold, oil both higher as Iranian concerns remain front-and-centre
  • US in focus tonight with ADP jobs and non-manufacturing PMI

AUD/USD
The Aussie pulled back to 1.0300 before seeing a solid bounce and therefore there’s been no major change in the market’s view. The next major level of resistance is at 1.0380/400 and a break of this level will be the next trigger for longs. A pullback to support is also likely to be seen as buyable.

GOLD
There’s been no major change to the outlook for gold with the overnight action seeing a small push higher. However, gold remains trapped in the short-term downtrend and the market is unlikely to become fully bullish until we see a clear break above the recent swing high at 1640.

EUR/USD
The Euro gave traders the perfect opportunity to get short up at resistance overnight before falling more than 150 pips. From here, traders will be eyeing support at 1.2860 as a break below this level will provide the next opportunity to get short.

GBP/USD
We didn’t see cable get up to our sell zone yesterday with the pair reversing up at 1.5670. From here, we’d be looking to play the range, with support at 1.5570 and resistance at 1.5670.

USD/JPY
The dollar-yen looks to have found some solid support at 76.60 and traders will be considering longs while 76.60 holds. A break of 76.60 turns the picture back to bearish.

SILVER
Silver gave traders the opportunity to get short up at 30.00 yet again yesterday and the market will continue to focus on this strategy in the near term. While we trade under 30.00, shorts are likely to be the favoured strategy.

USD/CHF
The dollar-Swiss has moved up to the top of the trading range and traders will be looking for shorts around 0.9470. Targets for the move lower will be back to 0.9300.

GBP/JPY
The market continues to look for shorting opportunities up at 120.35 with the sterling-yen in a clear downtrend. A break of 119.00 will also be seen as bearish.
AUD/JPY

As per yesterday’s report, the Aussie-yen is starting to look more bullish with a break above 80.00 likely to generate some buying interest. Until then, however, traders will be looking for shorts.

OIL
Oil still looks to be one of the most attractive opportunities in the market with the potential for geopolitical events generating some risk in this instrument. Traders will be focused on the long side with a pullback to 102.00 or a break to new highs both seen as chances to get long. Don’t forget inventories at 3.00am tonight.

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